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COUNCIL WORK SESSION <br />APRIL 6, 1989 <br />probably be a moot issue and suggested that the Council make <br />a decision on this matter on Monday, April 10, 1989. <br />FIRE DISTRICT STEERING COMMITTEE RECOMMENDATIONS <br />Mr. Schumacher handed out a memorandum dated April 5, 1989 <br />outlining the status of major issued discussed by the <br />Steering Committee to date. The major issues include Fire <br />District formula, voting /budget and the purchase of <br />equipment. <br />The position of the Steering Committee with regard to the <br />Fire District formula is to have the value of each home <br />reflected in the formula, ie.: <br />$80,000 Home = $32.46 for fire protection in Lino Lakes <br />= $29.32 for fire protection in Circle <br />Pines <br />= $33.61 for fire protection in Centerville <br />When the dollar difference between the cities exceeds a <br />certain percentage, the low community will have to pay the <br />higher community the difference. The question is at what <br />level does this kick in? If it exceeds 59, 109 or 159? In <br />addition this formula would be re- evaluated each year to see <br />that it is working as the Steering Committee had envisioned. <br />Mayor Benson explained that the whole idea behind this <br />formula is equal fire cost for all homes thoughout the <br />Centennial Fire District. The budget for the Fire District <br />will be established two or three years in advance and this <br />will help equalize the cost. <br />Mr. Bohjanen asked if the renegotiated contract will cost <br />Lino Lakes less than operation of its own fire department? <br />Mr. Schumacher explained that this would be hard to <br />calculate and that is one reason that the Lino Lakes Steering <br />Committee members are trying to negotiate a shorter Fire <br />District contract. <br />Mr. Reinert expressed concern about using an average <br />$80,000.00 home. He noted that in Lino Lakes the average <br />value of a home will steadily increase and asked what this <br />would do to the new formula. Mr. Schumacher said in theory <br />nothing. Every resident in the Fire District would pay the <br />same fire cost on an average priced home no matter what the <br />average price may be. Mr. Reinert asked Mr. Schumacher to <br />provide the Council with fire costs on a $90,000.00 and a <br />$100,000.00 home in all three cities of the Fire District. <br />He explained that he was concerned that the formula might be <br />over simplified and not be what the Council understood. <br />Mayor Benson asked each Council Member for their opinion of <br />the proposed funding formula. All Council Members agreed to <br />